EX-99.5 6 d794166dex995.htm EX-99.5

SOUTH DIVISION Ryan Sullivan 24 September 2014 Exhibit 99.5

DISCLAIMER 2 This Management Presentation contains forward-looking statements. James Hardie may from time to time make forward-looking statements in its periodic reports filed with or furnished to the SEC, on Forms 20-F and 6-K, in its annual reports to shareholders, in offering circulars, invitation memoranda and prospectuses, in media releases and other written materials and in oral statements made by the company’s officers, directors or employees to analysts, institutional investors, existing and potential lenders, representatives of the media and others. Statements that are not historical facts are forward-looking statements and such forward-looking statements are statements made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Examples of forward-looking statements include: • statements about the company’s future performance; • projections of the company’s results of operations or financial condition; • statements regarding the company’s plans, objectives or goals, including those relating to strategies, initiatives, competition, acquisitions, dispositions and/or its products; • expectations concerning the costs associated with the suspension or closure of operations at any of the company’s plants and future plans with respect to any such plants; • expectations concerning the costs associated with the significant capital expenditure projects at any of the company’s plants and future plans with respect to any such projects; • expectations regarding the extension or renewal of the company’s credit facilities including changes to terms, covenants or ratios; • expectations concerning dividend payments and share buy-backs; • statements concerning the company’s corporate and tax domiciles and structures and potential changes to them, including potential tax charges; • statements regarding tax liabilities and related audits, reviews and proceedings; • statements regarding the possible consequences and/or potential outcome of the legal proceedings brought against two of the company’s subsidiaries by the New Zealand Ministry of Education and the potential product liabilities, if any, associated with such proceedings; • expectations about the timing and amount of contributions to Asbestos Injuries Compensation Fund (AICF), a special purpose fund for the compensation of proven Australian asbestos-related personal injury and death claims; • expectations concerning indemnification obligations; • expectations concerning the adequacy of the company’s warranty provisions and estimates for future warranty-related costs; • statements regarding the company’s ability to manage legal and regulatory matters (including but not limited to product liability, environmental, intellectual property and competition law matters) and to resolve any such pending legal and regulatory matters within current estimates and in anticipation of certain third-party recoveries; and • statements about economic conditions, such as changes in the US economic or housing recovery or changes in the market conditions in the Asia Pacific region, the levels of new home construction and home renovations, unemployment levels, changes in consumer income, changes or stability in housing values, the availability of mortgages and other financing, mortgage and other interest rates, housing affordability and supply, the levels of foreclosures and home resales, currency exchange rates, and builder and consumer confidence.

3 Words such as “believe,” “anticipate,” “plan,” “expect,” “intend,” “target,” “estimate,” “project,” “predict,” “forecast,” “guideline,” “aim,” “will,” “should,” “likely,” “continue,” “may,” “objective,” “outlook” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. Readers are cautioned not to place undue reliance on these forward-looking statements and all such forward-looking statements are qualified in their entirety by reference to the following cautionary statements. Forward-looking statements are based on the company’s current expectations, estimates and assumptions and because forward-looking statements address future results, events and conditions, they, by their very nature, involve inherent risks and uncertainties, many of which are unforeseeable and beyond the company’s control. Such known and unknown risks, uncertainties and other factors may cause actual results, performance or other achievements to differ materially from the anticipated results, performance or achievements expressed, projected or implied by these forward-looking statements. These factors, some of which are discussed under “Risk Factors” in Section 3 of the Form 20-F filed with the Securities and Exchange Commission on 26 June 2014, include, but are not limited to: all matters relating to or arising out of the prior manufacture of products that contained asbestos by current and former James Hardie subsidiaries; required contributions to AICF, any shortfall in AICF and the effect of currency exchange rate movements on the amount recorded in the company’s financial statements as an asbestos liability; governmental loan facility to AICF; compliance with and changes in tax laws and treatments; competition and product pricing in the markets in which the company operates; the consequences of product failures or defects; exposure to environmental, asbestos, putative consumer class action or other legal proceedings; general economic and market conditions; the supply and cost of raw materials; possible increases in competition and the potential that competitors could copy the company’s products; reliance on a small number of customers; a customer’s inability to pay; compliance with and changes in environmental and health and safety laws; risks of conducting business internationally; compliance with and changes in laws and regulations; the effect of the transfer of the company’s corporate domicile from The Netherlands to Ireland, including changes in corporate governance and any potential tax benefits related thereto; currency exchange risks; dependence on customer preference and the concentration of the company’s customer base on large format retail customers, distributors and dealers; dependence on residential and commercial construction markets; the effect of adverse changes in climate or weather patterns; possible inability to renew credit facilities on terms favourable to the company, or at all; acquisition or sale of businesses and business segments; changes in the company’s key management personnel; inherent limitations on internal controls; use of accounting estimates; and all other risks identified in the company’s reports filed with Australian, Irish and US securities agencies and exchanges (as appropriate). The company cautions you that the foregoing list of factors is not exhaustive and that other risks and uncertainties may cause actual results to differ materially from those referenced in the company’s forward-looking statements. Forward-looking statements speak only as of the date they are made and are statements of the company’s current expectations concerning future results, events and conditions. The company assumes no obligation to update any forward-looking statements or information except as required by law.

AGENDA 4 • • • South Division: Overview and Starts Activity Manufacturing: Capability & Capacity Market: Product & Segment Strategies

SOUTH DIVISION AT A GLANCE Quick Facts Manufacturing Employees: ~640 Sales Employees: ~100 FY14 Volume: ~890 mmsf ~60% of North American Volume ~80% Exteriors vs Interiors ~85% Single Family vs Multi Family Source: Company data 5

SOUTH STARTS SUMMARY While the South Division continues to grow above the market, we have seen starts forecasts come down significantly since our FY15 planning cycle Source: Dodge/Company data 6

Organizational Development Focused growth from hardboard and vinyl while executing on the 90 • Key Product Initiatives – Trim, ColorPlus ® and Top of Market • Key Segment Initiatives – New contractor program, Ambassador program, 100% Hardie builder program Capacity Additions SOUTHERN DIVISION FY15 FOCUS AREAS 7

PRODUCT STRATEGY: TRIM Trim Product Initiatives in South Sanded Edge Expansion HardieTrim® Mouldings 1x2 Position durability of JH trim against lower performing wood and hardboard trim 8

PRODUCT STRATEGY: COLORPLUS ® Provide a superior performing product to homeowners Provide a more economical JH solution in high paint cost markets Organizational focus for C+ is on Repair/Remodel segments across the South, and New Construction in markets with high field paint costs 9

PRODUCT STRATEGY: TOP OF MARKET Reveal® Panel System Artisan® Plank Artisan® V Rustic We are expanding our access to the “Top of Market” by launching new products and entering new markets 10

3 key segment initiatives within the Single Family segment to accelerate growth and product mix shift SEGMENT STRATEGIES New R&R Contractor Program R&R Ambassador Program 100% Hardie 11

R&R SEGMENT STRATEGY Ensure R&R segment is disproportionate share of 35-90 12 Build and maintain a winning network of aligned contractors Contractor Programs Contractor Business Solutions Digital Build an organization of R&R experts Training Organizational Alignment Compensation for Right Behavior Focus resources on vinyl standard markets Identify Markets Drive Preference for JH Leverage Wins to Develop Contractors Ensure differentiated position with the homeowner Win Share of Voice Lead Nurturing Tools & Proof Sources

To increase the number of homes that receive a high-quality Hardie sales and install experience via growing our network of aligned contractors. PURPOSE OF WEBSITE CONTRACTOR PROGRAM JH POV CONTRACTOR POV HOMEOWNER POV Extension of our Brand. Deliver JH value prop in local markets Match in-market homeowners with trusted professionals who can install. Drive product strategy. Promote long-term loyalty. Manufacturer endorsement Leads Continuing education Access to unique business solutions Rewards Find qualified JH contractors Contractor options to choose from Peace of mind in decision 13

Preferred Remodeler Program Associate Contractor Program WHY CHANGE OUR PROGRAM NOW? Combining the best of both programs and offering even more non-product value adds and growth opportunities for companies of all sizes. 14 Any Contractor or Remodeler, No Matter the Business Size. “James Hardie is a part of my business.” • Tools/programs to grow with JH • Clear path/requirements to achieve Preferred • Transitional tier via “Directory Listing” Dedicated Replacement Contractors “James Hardie is my business.” • Highest endorsement from Hardie • Enhanced support and tools • Differentiation from other siding contractors

CEMENTING OURSELVES AS YOUR GREATEST ALLY Program launching Q3 FY15 15

MEMBERSHIP LEVELS FOR ANY SIZE BUSINESS By offering one consolidated program, we are able to streamline the contractor acquisition and account development process, as new companies are brought on board and we work to help grow their businesses with James Hardie as a focus. 16 • • • • • • • • • • • • Elite logo & certificate Elite placement on the Remodeler Locator Distinguish your business with Contractor Alliance Badges Participation in the HardieRewards™ Program (25% Bonus Points) HardieReward Milestones™ Members Only access to production, sales, and marketing business solutions Advanced training opportunities on installation best practices, job-site safety, lead generation, and in-home sales Free GuildQuality Surveying Preferred logo & certificate Preferred placement on the Remodeler Locator Distinguish your business with Contractor Alliance Badges Participation in the HardieRewards™ Program (10% Bonus Points) • Participation in the HardieRewards™ Program • Training opportunities • Beyond the Level eNewsletter • HardieReward Milestones™ • Members Only access to production, sales, and marketing business solutions • Advanced training opportunities on installation best practices, job-site safety, lead generation, and in-home sales • Free GuildQuality Surveying • Listing on the James Hardie Remodeler Locator • Participation in the HardieRewards™ Program • Earn HardieReward Milestones™ • Members Only access to production, sales, and marketing business solutions • Advanced training opportunities on installation best practices, job-site safety, lead generation, and in-home sales • Free GuildQuality Surveying • Earn HardieReward Milestones™ • Access to unique production, sales, and marketing business solutions • Advanced training opportunities on installation best practices, job-site safety, lead generation, and in-home sales REWARDS ADVANTAGE REWARDS ADVANTAGE REWARDS PLUS REWARDS PLUS REWARDS REWARDS

• • • • • SOUTH DIVISION MANUFACTURING Plant Key Capabilities Fontana, CA Sheet Machines: 4’ wide, 5’ wide Low Density Production Primary products: Panel, Backer Key Imports: Trim, Heritage®, Artisan® and ColorPlus® Products Plant City, FL Sheet Machines: 4’ wide Primary Products: Panel, Plank Key Imports: Backer, Trim, Heritage®, Artisan®, Vented Soffit and ColorPlus® Products Cleburne, TX Sheet Machines: 5’ wide Low Density Production Single Sourced Capacity: HLD Trim Primary products: Trim, Backer, Plank Key Imports: Heritage® & Artisan® Waxahachie, TX Sheet Machines: 4’ wide and 5’ wide Primary products: Panel, Plank, Soffit Key Imports: Backer, Heritage®, Artisan® 17 Keys to Operational Strategy Safety Customer service delivery Capacity ahead of demand Network redundancy Labor efficiency and operational excellence

SOUTH MANUFACTURING LOCATIONS HZ10 Manufacturing Facility ColorPlus ® Products Facility VMI Distribution Center Big Box Distribution Center 18

Capacity expansion plans aligned to current forecast and our 85% target utilization rate • • • • SOUTHERN CAPACITY UPDATE 19 Fontana: Ramp-up currently on track Plant City Trim: Construction complete Q415 Cleburne: Construction complete Q116 Evaluating next capacity add: Summerville vs Mid South

• South is predominantly mature FC market. Growth must come from wood, hardboard, accessories, and vinyl in certain regions • Starts/Market coming in below forecast • Key Product Initiatives; Trim, ColorPlus ® , and Top of Market • Key Segment Initiatives; New Contractor Program, Hardie Ambassador Program, 100% Hardie Builder Program • Capacity expansion plans adjusted for new forecasts SUMMARY 20

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